Compound (COMPUSD) Forms Bearish Pennant Pattern to Continue Price Decline
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Market Analysis – COMPUSD to Keep Going Lower With Bearish Pennant Pattern
COMPUSD Bearish Pennant Pattern is set to keep driving the price lower. The market has been in a consolidation phase for sixty-six trading days, from the 15th of February to the 22nd of April 2021.
Compound finally broke out of range to begin a steady rise on the 23rd of March 2021. The bulls took the market to an all-time high of $918.000 on the 12th of May 2021 and then got exhausted. Control was immediately ceased by the bears, who swiftly brought the market down. COMPUSD fell from the $674.100 key level to the $452.000 key level in one day.
Following that, the bulls attempted to rally but were met with a rejection at the $587.000 key level. The price plummeted further to $266.000. The buyers still tied to lift the market at intervals but it fell each time again. The tussle between the bears and the bulls eventually resulted in a bearish pennant pattern for COMPUSD.
The bearish pennant pattern is in favor of the bears. The market has now broken out of the bearish pennant pattern. The daily candlesticks are seen to be sliding downwards on a trend line with the 9 MA (Moving Average) acting as resistance to the candles. The RSI (Relative Strength Index) signal line is currently at 33.65 and dipping, showing the market’s current bearish action.
COMPUSD Key Levels
Resistance Zones: $346.800, $266.000
Support Zones: $197.000, $126.000
Market Prospects
On the 4 hour chart, the market has just bounced down from the $266.000 resistance after testing it twice. The price is currently edging closer to the $197.000 support level.
The 9MA has moved above the past three candles to show that the price is going lower. The RSI signal line is currently at 39.45 and is also dipping towards the oversold region. The price still has a lot of room to fall.
Compound is predicted to fall to $126.000. This height of the expected price fall corresponds to the height of the flagpole of the bearish pennant pattern.
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